e-Finance Segment

Transcription

e-Finance Segment

http://www.softbank.co.jp/english/
Becoming
the Greatest
Lifestyle
Company
FACT BOOK 2004
The SOFTBANK Group is a corporate group dedicated to developing broadbandrelated businesses. All activities are guided by our management philosophy of
“Endeavoring to benefit society and the economy by fostering the sharing of
wisdom and knowledge gained through the IT revolution.” We are convinced that
broadband will accelerate the pace of the IT revolution in the 21st century. Translating
this belief into action, we have built a broadband network and are introducing
innovative services that create entirely new markets. The goals are to contribute
to society and increase our enterprise value.
Contents
Message from the President ___________________
1
Business Group Formation ____________________
2
Outline of Businesses
Broadband Infrastructure Segment ___________
4
e-Commerce Segment
7
_____________________
e-Finance Segment ________________________ 10
Media & Marketing Segment ________________ 14
Broadmedia Segment ______________________ 16
Internet Culture Segment ___________________ 18
Technology Services Segment _______________ 20
Overseas Funds and Other Businesses
Investment Summary
________ 22
________________________ 24
Financial Information ________________________ 26
News
____________________________________ 28
Corporate Data _____________________________ 29
Message from the President
The New Society Made Possible by Broadband
will also be a key factor. We must also become the leader in the
Today, we are witnessing the IT revolution, the third revolution in
content domain, capturing even more synergies among group com-
social development following the agricultural and industrial revolu-
panies that are developing diverse range of brands.
st
tions. Because of this, a 21 century IT society is now taking shape.
As a leader in the IT society, the SOFTBANK Group is aiming for
Driving the IT revolution, and serving as the basis for the IT society,
still more growth by identifying trends in technology and business
is broadband, a domain that encompasses all three of the principal
activity to translate its vision and strategies into actual businesses.
electronic technologies: television, telephones and microprocessors.
The entire group will continue promoting broadband businesses, serv-
In Japan, utilization of broadband has grown rapidly in just a few
ing as a lifestyle company that can use broadband to create new
short years since the SOFTBANK Group launched its Yahoo! BB service.
lifestyles, making peoples’ lives more enriching and enjoyable.
The broadband household penetration rate has exceeded 30%. Broadband will continue to develop as a means of communication that plays
an increasingly vital role in our daily activities. The use of broadband
networks to link items of all kinds is taking us into the ubiquitous
June 2004
broadband age where information can be moved instantly from person
to person, between people and machines, and from machine to
President and Chief Executive Officer
machine anytime-anywhere. Free of the restraints of established
Masayoshi Son
concepts and common sense, companies will be launching a steady
stream of new services that will bring about dramatic changes
in lifestyles.
Aspiring to Be a 21st Century Lifestyle Company
Since its inception, the SOFTBANK Group has been conducting
operations by envisioning these types of lifestyle changes. Following the appearance of the Internet, we quickly concentrated our management resources in this domain, conducting activities that use
networks to enable people to share wisdom and knowledge. Broadband has been the nucleus of our operations for several years now.
We constructed a proprietary large-scale IP network ahead of our
competitors, basing it on the concept of supplying content not only
as text but also voice and streaming content.
We believe that three strengths are essential to the execution of
our broadband strategy: an unparalleled infrastructure, strong sales
and marketing capabilities, and powerful content. The SOFTBANK
Group’s position as Japan’s number-one provider of broadband
infrastructure services is made possible by overwhelming superiority regarding our infrastructure, which employs a revolutionary IP network, and strength in sales and marketing gained through the
distribution of IT-related products since the inception of SOFTBANK
CORP. As we advance to the next stage, supplying powerful content
1
Business Group Formation (As of March 31, 2004)
GungHo Online Entertainment
Nihon SafeNet
SOFTBANK Frameworks
SOFTBANK LOGISTICS
SOFTBANK Human Capital
Ability Design
ValuMore
Vector
BB Serve
Blue Planet
Carview
CMnet
CreativeBank
Dee Corp.
Dee Service
DIAMOND.COM
eBEST
Broadmedia Segment
>>see page 16
SOFTBANK FINANCE
SOFTBANK INVESTMENT
Arsnova Capital Research
BIOVISION CAPITAL
E*TRADE SECURITIES
e-Commodity
Finance All
Finance All Service
GOODLOAN
Home Loan Consulting
TechTank
VeriTrans
WEB-Lease
artfolio
ASCOT
Benefit Systems
e-Finance Segment
>>see page 10
Fides Securities
Intechstra
Morningstar
Morningstar Japan
E*Advisor
Gomez Japan
Morningstar Asset Management
Office Work
SB FINANCE KOREA
SBI ASSET MANAGEMENT
SBI CAPITAL
SophiaBank
SWAN Credit
UTOPIAN LIFE
WORLD NICHIEI FRONTIER Securities
SB CHINA HOLDINGS
SOFTBANK Korea
>>see page 22
2
>>see page 7
SOFTBANK Broadmedia
ALISS-NET
BB Factory
Broadmedia Research Institute
CDN Solutions
Club iT
BB Cable
EMBANYA
Fishing Vision
iM Networks Japan
Nihon Eiga Satellite Broadcasting
Oy Gamecluster
Xdrive Japan
Overseas Funds
Other Businesses
e-Commerce Segment
AtWork
SOFTBANK Holdings
SB Holdings (Europe)
SB Sweden
SOFTBANK Commerce Korea
Broadband Infrastructure Segment
>>see page 4
SOFTBANK BB
Internet Culture Segment
>>see page 18
AboveNet Japan
BB Backbone
BB Communications
BBIX
BB Marketing
BEST BroadBand
BROADBAND JAPAN
IP Revolution
Yahoo Japan
BridalNet
e-Shopping! Books
Indival
INTAGE Interactive
Tavigator
Y’s Agencies
Y’s Insurance
Y’s Sports
Technology Services Segment
>>see page 20
LAOX BB
Macs BroadBand
NC Japan
TMSw
YAMADA BroadBand
Internet Research Institute
Net Culture
Yahoo! Deutschland
Yahoo! France
Yahoo! Inc.
Yahoo! Korea
Yahoo! UK
SOFTBANK TECHNOLOGY HOLDINGS*
SOFTBANK TECHNOLOGY
AIP Bridge
AsiaVision Japan
EC Architects
e-Commerce Technology
E-Cosmos
i2ts
USTC E-BUSINESS Technology
* On June 2004, SOFTBANK TECHNOLOGY HOLDINGS CORP. was dissolved.
Media & Marketing Segment
>>see page 14
Pure Holding Company
SOFTBANK Media & Marketing
Click2learn Japan
cyber communications
Englishtown
JaJa Entertainment
M.P.Technologies
SBMM Creative
SOFTBANK MOBILE
SOFTBANK Publishing
EC RESEARCH
SOFTBANK ITmedia
Tribeck Strategies
3
Fiscal 2004 Performance
Internet traffic, operates at more than 127 Gbps, giving the network one of the
Segment sales increased ¥88,899 million, or 222%, to ¥128,906 million. Expan-
highest capacities in Japan. As of March 31, 2004, the network could be con-
sion in the scale of the Yahoo! BB service contributed to sales growth at
nected to 3,241 NTT central offices, making it able to reach more than 90% of all
SOFTBANK BB Corp. and ISP*1 revenue increase at Yahoo Japan Corporation. As
telephone lines in Japan.
a result, this segment has developed into a business generating annual sales of
BB Phone, an IP telephony service, has a dominant position in Japan’s IP
more than ¥100 billion. Mainly due to customer acquisition costs, the operating
telephony market. Introduced ahead of other companies’ services, BB Phone had
loss was ¥87,597 million, but this was ¥8,607 million less than in fiscal 2003
more than 3.78 million users as of March 31, 2004 and continues to drive the
due to growth in the number of paying customers and other factors.
popularity of this market. In December 2003, BB Phone increased convenience
for users by introducing a service using the “050” number and, in February
Note:Operating results in this segment include the Yahoo! BB service of Yahoo
Japan Corporation.
Measures to Strengthen Established Services Are Accompanied by New
2004 began to interconnect with networks of mobile phone carriers. These and
other moves are reducing costs and boosting profit margins. In July 2003,
Yahoo! BB began Yahoo! BB 26M , an ADSL connection service with a maximum downstream speed of 26Mbps using the Yahoo! BB TRIO-MODEM 26M.
Initiatives
The Yahoo! BB comprehensive broadband service, which is offered jointly by
SOFTBANK BB Corp. and Yahoo Japan Corporation, had more than four million
lines installed as of March 31, 2004. This gave it a market share of about 36%
Japan’s Largest Full IP Network
among all telecommunications carriers offering ADSL services in Japan as of
March 31, 2004. On the basis of cumulative lines installed, Yahoo! BB has retained
the top share for 20 consecutive months.
Most distinguishing Yahoo! BB is its vertically integrated business model
that the SOFTBANK Group offers on its own from installed lines all the way to
Nationwide Backbone
15 – 50 Gbps
Worldwide
3,241
NTT Central Offices
(March 31, 2004)
Internet Connection
ISP operations. This business model permits rapid decision-making, which is
essential to keep up with the fast pace of technological progress in the IT and
telecommunications industries. That means businesses can be developed faster
Fukuoka Hiroshima
Osaka
Tokyo
Sendai
Sapporo
than those of competitors. Furthermore, the Yahoo! BB backbone network is
Nagoya
based on IP, an Internet technology, and was designed from the outset to support a broad range of future services. This foresight makes possible the provi-
Nationwide Fiber-optic Network
sion of revolutionary services at a low cost, the greatest strength of Yahoo! BB
services. The backbone network has a capacity of 50 Gbps on the interexchange
channel between Tokyo, Nagoya and Osaka and 15 to 20 Gbps on other nationwide backbones. Furthermore, the Internet exchange, which directs the flow of
Summary of Broadband Infrastructure Segment Business Results
from FY2004* Consolidated Results of SOFTBANK CORP.
(Millions of yen)
Sales
128,906
Operating expenses
216,504
Operating income
(87,597)
Assets
174,814
* The 2004 fiscal year refers to the year ended March 31, 2004 throughout this book.
4
ADSL
And January 2004 saw the commencement of Yahoo! BB 45M, with a maxi-
B-VPN, and the remote access service B-R@S. It also offers Yahoo! BB SOHO,
mum downstream speed of 45Mbps. Introducing these high-speed services is
which is tailored to the needs of small and mid-sized companies. In addition to
steadily raising average revenue per user. Furthermore, growth in users of value-
these data communication services, there is a diverse array of services such as
added services such as BB Phone and Wireless LAN Pack is supporting consistent
the B-Conference TV conferencing system, the BB TALK PC video conferencing
improvement in the variable profit margin. The same backbone is being employed
system, BB Phone Centrex IP Centrex service, and the BB GUARD total security
to supply a number of value-added services in a comprehensive manner, includ-
solution, all offered at reasonable rates. A utility computing*3 service and other
TM
2
ing BB Security—powered by Symantec —* to further improve the variable
services made possible by the high-capacity backbone network are planned as
profit margin.
the full-scale development of the corporate market takes place.
In July 2003, the BB Games online game portal site opened. More measures
are planned to use the Yahoo! BB user base effectively to establish a growing
*1
Internet service provider
*2
To upgrade security measures for Yahoo! BB subscribers, this service is being offered at no cost from
presence in the market for content and services.
March 18, 2004 until September 30, 2004, a period of approximately six months.
Not only for the consumer market but also for the corporate market, the
segment offers a wide array of services that include ultra-high-speed (100 Mbps
*3
Utility computing is a concept whereby users are supplied with precisely the amount of hardware, computing
power and applications they need at any required time, just as electricity or water.
to 1 Gbps), always-on fiber-optic access, the VPN (virtual private network) service,
Trends in the Number of Yahoo! BB Lines Installed
Trends in the Number of BB Phone Users
(10,000 users)
(10,000 installed lines)
400
400
350
350
300
300
250
250
200
200
150
150
100
100
50
50
0
0
03/3
4 5 6 7 8 9 10 11 12
04/1
2 3
03/3
4 5 6 7 8 9 10 11 12
04/1
2 3
5
Major Group Companies
Company name
Most recent fiscal year-end
Stock code
SOFTBANK BB Corp.
Mar. 2004 (Non-consolidated)
Date established
Type of business
Location
Revenue
Operating income Ordinary income Net income
Date of IPO
Public offering price
Share price
Broadband infrastructure, IT products distribution and
e-commerce investment businesses
Total assets
SB’s market capitalization
May 2000
Chuo-ku, Tokyo
http://www.softbankbb.co.jp/
¥356,947 million ¥(94,473) million ¥(109,552) million ¥(123,945) million
¥253,271 million
AboveNet Japan, Inc.
Data center business
Oct. 2002
Chuo-ku, Tokyo
http://www.jp.above.net/
BB Backbone Corporation
Provision of backbone network
Feb. 2002
–
BB Communications Co.
¥1,338 million
¥(20) million
¥(25) million
¥(60) million
Development, design, manufacture and sales of computers,
peripherals and software
¥1,361 million
¥42 million
¥65 million
SB investment
SB ownership
URL
Chuo-ku, Tokyo
¥1,428 million
Feb. 2002
Chuo-ku, Tokyo
http://www.bbcom.jp/
¥10 million
¥448 million
Shareholders’ equity
Number of shares outstanding
¥306,750 million
100%
¥83,070 million
¥43 million
100%
¥210 million
100%
¥75 million
¥780 million
60%
¥351 million
BBIX, Inc
Provision of nationwide dispersed IX (Internet exchange) service
Jun. 2003
Chuo-ku, Tokyo
http://www.bbix.net/
¥100 million
100%
IP Revolution, Inc.
Ultra-high-speed Internet access services using fiber optic
Apr. 2000
Chuo-ku, Tokyo
http://www.iprevolution.ne.jp/
¥2,200 million
100%
¥2,668 million
¥891 million
¥801 million
¥738 million
¥1,737 million
TMSw Corp.
ASP type services for IP telephony, voice recognition and
database solutions
Aug. 2002
–
Chuo-ku, Tokyo
BB Marketing Corp.
Sales of broadband networks and broadband-related products
through store chains
Jun. 2002
–
BEST BroadBand Corp.
BROADBAND JAPAN CORPORATION
¥239 million
¥701 million
100%
Yokohama, Kanagawa
¥35 million
35%
Apr. 2002
–
Fukuoka, Fukuoka
¥40 million
40%
Aug. 2002
–
Sagamihara, Kanagawa
¥35 million
35%
LAOX BB Corp.
Jun. 2002
–
Chiyoda-ku, Tokyo
¥40 million
40%
Macs BroadBand Corp.
Aug. 2002
–
Mito, Ibaraki
¥35 million
35%
NC Japan K.K
On-line distribution of games, planning, development, design,
translation and sales of game software
Sep. 2001
Meguro-ku, Tokyo
http://www.ncjapan.co.jp/
¥289 million
39%
YAMADA BroadBand Corp.
Apr. 2002
–
¥35 million
35%
Maebashi, Gunma
Consolidated subsidiaries
Notes: Date established ....... May represent the date on which the business was launched.
Equity-method non-consolidated subsidiaries and affiliates
SB investment ........... Amount is based on the economic ownership ratio of SB, but does not include investments in operating holding companies, holding and fundOther securities, etc.
related companies or investments made by affiliated companies and funds in individual companies.
SB ownership ............ Ownership refers to the ratio of economic ownership, but does not include investments made by affiliated companies or funds in individual
companies. Figures are rounded up or down to the nearest whole number.
* All data, with some exceptions, is as of March 31, 2004.
* SB is used as an abbreviation for SOFTBANK CORP. throughout this book.
6
e-Commerce Segment
SOFTBANK BB Corp. is also concentrating on the solutions business. Oper-
Segment sales decreased ¥11,197 million, or 4%, to ¥254,888 million. This was
ating income from these solutions, mostly security-related items such as firewalls,
attributable to the decrease of sales of software to consumers due to a drop in
virus protection, and remote surveillance systems and operations, is gradually
average unit prices and other factors, whereas the solutions business, mainly
increasing. Additionally, the increasing use of broadband networks that facili-
involving security, and hardware posted strong sales at SOFTBANK BB Corp.
tate high-volume data communications makes it possible to switch from a distri-
Operating income increased ¥1,180 million, or 48%, to ¥3,647 million. This was
bution model in which packaged software is bought and sold to an on-demand
the result of reducing selling, general and administrative expenses by rationaliz-
model. This will enable the segment to offer a system solution business that
ing personnel, logistics and other expenses and also growth in the solutions
supplies a large assortment of content and applications in the form of an ASP
business, which has a high profit margin, at SOFTBANK BB Corp., especially in
service. The segment will continue to use its strength as a one-stop source of
the second half. Among other companies in this segment, operating results were
products and solution services ranging from installed lines to all related prod-
generally better compared with fiscal 2003. In particular, Carview Corporation
ucts such as hardware and software. To raise profitability and create more
and eCareer CORP. (now SOFTBANK Human Capital Corp.) and other companies
opportunities for generating earnings, planning and proposals for broadband-
continued to post growth in net sales and operating income.
related products will be supplied in a manner that takes full advantage of expertise as the broadband infrastructure provider with the largest number of users.
Creating New Profit Opportunities Through Planning and Proposals for
Regarding e-commerce-related businesses, SOFTBANK Human Capital Corp.
Broadband Products and Services
(formerly eCareer CORP.), operator of the eCareer job search information site,
The e-Commerce segment, with SOFTBANK BB Corp. as its nucleus, is engaged
and Carview Corporation, operator of the carview comprehensive automotive
in the distribution of IT-related products and e-commerce-related businesses.
information site, recorded strong growth in sales and earnings. eCareer ranks
Originally, SOFTBANK Corp. was established to conduct these business
first in Japan based on the number of job postings. SOFTBANK Human Capital
activities. Backed by more than two decades of experience in the distribution of
Corp. is now using alliances with other sites to experiment with new ventures,
IT-related products, SOFTBANK BB Corp. is Japan’s leader in this market. The
such as establishment of the ITMedia and Vector job search information sites.
IT-Exchange B2B site for the sale of IT-related products supplies real-time data
carview boasts the highest monthly visitor and access volume of any compre-
on about 100,000 items of merchandise from about 4,000 vendors in Japan and
hensive automotive site in Japan (April 2004 data of NetRatings Japan, Inc.),
overseas, as well as information about IT-related products, inventories, order
offering an unmatched array of resources extending from new and used car in-
status and other subjects. Customers can use this centralized management sys-
formation to used car appraisals and insurance estimates. Among other seg-
tem for every procurement step from checking inventories and estimates through
ment companies recording steady growth are Dee Corp., which operates a Reverse
order placement and delivery. An order-taking call center is operated in addition
Auction service, and GungHo Online Entertainment, Inc., operator of the
to the website to create an aggressive sales model. By offering sales methods
RAGNAROK ONLINE, one of Japan’s largest online games.
that match the requirements of a variety of customers (vendors), SOFTBANK BB
Corp. is enlarging its ability to generate a stable flow of revenues and earnings.
Diversification of Software Sales Methods
Summary of e-Commerce Segment Business Results
from FY2004 Consolidated Results of SOFTBANK CORP.
Packaged Software
Software Licenses
(Millions of yen)
Sales
254,888
Operating expenses
251,241
Operating income
Assets
3,647
74,053
Downloads
ASP Service
1st Stage
2nd Stage
3rd Stage
(1985-1994)
(1995-2000)
(2001-2005)
7
e-Commerce Segment
Company name
Stock code
SOFTBANK BB Corp.
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Broadband infrastructure, IT products distribution and
e-commerce investments
Total assets
May 2000
Chuo-ku, Tokyo
http://www.softbankbb.co.jp/
¥356,947 million ¥(94,473) million ¥(109,552) million ¥(123,945) million
¥253,271 million
¥306,750 million
100%
¥83,070 million
Ability Design, Ltd.
Temporary and permanent employment services
Oct. 2000
Chuo-ku, Tokyo
http://www.ability-design.com/
¥267 million
99%
BB Serve, Inc.
Internet infrastructure business for content distribution
Dec. 2002
Chuo-ku, Tokyo
http://www.bb-serve.com/
¥621 million
100%
Carview Corporation
(formerly CarPoint K.K.)
On-line provider of information on automobiles and automobiles
for distribution
Oct. 1999
Chuo-ku, Tokyo
http://www.carview.co.jp/
¥1,737 million
53%
CreativeBank Inc.
Advertising agency and sales promotion support
for Internet businesses
Dec. 1986
Koto-ku, Tokyo
http://www.creativebank.co.jp/
¥328 million
56%
¥1,353 million
¥67 million
¥66 million
¥36 million
¥569 million
Dee Corp.
Internet-based comprehensive purchasing assistance
for companies
Feb. 2001
Minato-ku, Tokyo
http://www.deecorp.jp/
Dee Service Corp.
Provision of reverse auction system using the Internet
Sep. 2002
–
DIAMOND.COM CORPORATION
SOFTBANK Frameworks Corporation
SOFTBANK Human Capital Corp.
(formerly eCareer CORP.)
100%
Chuo-ku, Tokyo
¥7 million
100%
On-line sales of diamonds, accessories, watches and
luxury-brand merchandise
Sep. 2000
Chuo-ku, Tokyo
http://www.diamondstyle.co.jp/
¥200 million
100%
Logistics outsourcing and consulting services for IT companies
Oct. 1990
Chuo-ku, Tokyo
http://www.sbfw.co.jp/
¥150 million
100%
¥9,984 million
¥68 million
¥78 million
¥28 million
Sep. 1999
Chuo-ku, Tokyo
http://www.ecareer.ne.jp/
Operation of job search information website
¥1,405 million
¥112 million
¥109 million
¥2,289 million
¥87 million
¥954 million
Management and operation of distribution centers, collection
and processing of logistics data, packaging and warehousing
Jul. 2000
–
ValuMore Corporation
On-line sales of PCs and peripherals and provision of
related information
Jan. 2002
Chuo-ku, Tokyo
http://store.yahoo.co.jp/valumore/
Vector Inc.
PC software sales through downloading
Feb. 1989
Shinjuku-ku, Tokyo
http://www.vector.co.jp/
** Retroactive Adjustment
¥409 million
¥1,461 million
SOFTBANK LOGISTICS
CORPORATION
2656 (Hercules)
8
Date established
Type of business
¥2,013 million
Aug. 2000
¥211 million
¥222 million
¥400,000**
¥110 million
¥310,000
Koto-ku, Tokyo
¥3,019 million
¥10,943 million
¥746 million
¥2,290 million
99%
¥579 million
¥20 million
100%
¥150 million
100%
¥1,106 million
51%
¥2,601 million
68 thousand shares
Company name
Stock code
Type of business
Revenue
Date of IPO
Share price
Date established
Location
SB investment
SB ownership
URL
Total assets
Blue Planet Corporation
Business portal management for regional financial institutions
and B-to-B support for their business partners
Apr. 2001
Chiyoda-ku, Tokyo
http://www.blueplanet.co.jp/
¥136 million
37%
CMnet corporation
Management of construction e-market and portal site that
handles orders for construction projects on-line
Nov. 2000
Minato-ku, Tokyo
http://www.cmnetcorp.com/
¥298 million
20%
eBEST CORP.
On-line sales of products from home electric appliances to
everyday items and related services
Oct. 1999
Fukuoka, Fukuoka
http://www.ebest.co.jp/
¥100 million
33%
GungHo Online Entertainment Inc.
Distribution, operation, planning, development, sales and
marketing for on-line games using the Internet
Jul. 2002
Chiyoda-ku, Tokyo
http://www.gungho.jp/
¥480 million
44%
Nihon SafeNet K.K.
(formerly RAINBOW TECHNOLOGIES K.K.)
Development, design manufacture, sales, maintenance and import/export
of computers, peripherals, communications equipment and software
Jul. 2001
Chuo-ku, Tokyo
http://www.jp.safenet-inc.com/
¥53 million
35%
9
e-Finance Segment
Fiscal 2004 Performance*
Co., Ltd., a provider of sophisticated financial products to institutional inves-
Segment revenue increased ¥13,855 million, or 49%, to ¥42,051 million. An in-
tors, which was renamed Fides Securities Corporation in March 2004. While
crease in brokerage commission revenue and financial income such as interest
seeking synergies among these new subsidiaries and E*TRADE SECURITIES
at E*TRADE SECURITIES CO., LTD., fueled by the Tokyo stock market rally,
CO., LTD., which is Japan’s biggest on-line securities company in terms of
accounted for the organic growth, in addition to the sales growth following the
number of accounts, assets in customer accounts and trading volume, to inte-
acquisition of a controlling stake in WORLD NICHIEI Securities Co., Ltd. by
grate “Internet” with “real,” the e-Finance group has been growing in a way
SOFTBANK INVESTMENT CORPORATION in October 2003. The segment recorded
that allows it to compete with major domestic securities companies. Now the
operating income of ¥6,340 million compared with the loss of ¥5,592 million in
group is becoming actively involved in securities businesses outside Japan.
fiscal 2003. Along with gains at E*TRADE SECURITIES CO., LTD. and WORLD
Discussion with TianYi Securities Co., Ltd. in China is under way to form a
NICHIEI FRONTIER Securities Co., Ltd., a narrowing loss from the revaluation of
partnership in various areas such as stock brokerage, M&A advisory, a joint
operational investment securities and a gain on sale of these securities at
mutual funds business and others, and a basic agreement has been reached
SOFTBANK INVESTMENT CORPORATION were mainly responsible for the
on an M&A advisory business alliance with the British M&A boutique Shield
improvement in operating income. The net income of the segment hit ¥15,211
Advisory Services Limited.
million, with a ¥9,889 million gain as extraordinary income on the partial sale of
investment securities such as SOFTBANK INVESTMENT CORPORATION.
Note:Figures differ from SOFTBANK’s consolidated business segment information in
fiscal 2004 because a different calculation method was used.
Broader Business Base and More Comprehensive Financial Services
Number of Accounts and Customer Trading Volume at
E*TRADE SECURITIES CO., LTD.
Daily trading volume
(Millions of yen)
Accounts
The e-Finance segment has developed into a business group that encompasses
almost all segments of financial services, including an online brokerage busi-
400,000
120,000
350,000
90,000
300,000
60,000
250,000
30,000
ness, venture capital funds management, an incubation business and others.
The e-Finance group, with SOFTBANK INVESTMENT CORPORATION as its
core company, is further expanding its business base around its three major
business domains: Brokerage, Asset management and Financial services.
In the brokerage business, to bolster sales capabilities and diversify revenue sources, SOFTBANK INVESTMENT CORPORATION acquired World Nichiei
Securities Co., Ltd., which, with a 27 branch network throughout Japan, has a
strong individual investor base. This was followed by a merger with SOFTBANK
FRONTIER SECURITIES CO., LTD. in February 2004 to form WORLD NICHIEI
200,000
0
03/3
4
5
6
7
8
9 10 11 12
04/1
2
3
FRONTIER Securities Co., Ltd., and the acquisition of Nissho Iwai Securities
SOFTBANK FINANCE CORPORATION’s FY2004 Summary of Consolidated Business Results (Unaudited)
Statement of Income
Balance Sheet
(Millions of yen)
Financing business revenue
42,051
Financing business expenses
35,711
Operating income
(Millions of yen)
Current assets
Property and equipment
Net income
12,049
6,340
Investments and other assets
Deferred charges
Total assets
80,031
53,095
1,371
252
456,673
Minority interests
51,414
60,896
Common stock
Total
* Figures differ from SOFTBANK’s consolidated business segment information in fiscal 2004 because a different calculation method was used.
10
289,896
4,693
5,657
15,211
Long-term liabilities
Total reserves under special laws
Intangible assets
Ordinary income
359,646
Current liabilities
41,315
456,673
The investment business has been focused on investment activities in the
Building a Stronger Operating Base Centered on Three Core Businesses
biotechnology-related business and corporate turnaround business as well as in
the IT industry, whose growth is being re-ignited by the growth in broadband
connectivity. This business is aiming to create new business opportunities and
diversify its business base by conducting fund management jointly with the securities business.
Finance All Corporation, which listed its shares on the Hercules Market of
the Osaka Securities Exchange on September 19, 2003, whose subsidiaries
include Good LOAN Co., Ltd., a securitizable mortgage provider, WEB-Lease Co.,
Ltd., a leasing company, and others, became a subsidiary of SOFTBANK
INVESTMENT CORPORATION in February 2004. The e-Finance Group has strived
to strengthen collaboration among group companies to thrive as “comprehensive financial services provider.”
e-Finance Segment
Company name
Stock code
Date established
Type of business
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Total assets
SOFTBANK FINANCE CORPORATION
Operating holding company of e-Finance segment
Mar. 1999
Minato-ku, Tokyo
http://www.sbfinance.co.jp/
–
100%
Arsnova Capital Research, Inc.
Structuring and management of securitized assets and other
order-made financial products
Aug. 2001
Minato-ku, Tokyo
http://www.arsnova-cr.com/
¥78 million
39%
artfolio corporation
Broker for works of art
Aug. 2001
Minato-ku, Tokyo
http://www.artfolio.co.jp/
¥471 million
84%
Benefit Systems Inc.
Operation and management of defined-benefit pension funds
Mar. 2001
Minato-ku, Tokyo
http://www.benefit401k.com/
¥731 million
56%
BIOVISION CAPITAL CORP.
Incubation of bio venture businesses and fund operation
and management
Aug. 2002
Minato-ku, Tokyo
http://www.biovision-capital.com/
¥23 million
24%
E*Advisor Co., Ltd.
Financial planning service
Mar. 1995
Minato-ku, Tokyo
http://www.eadvisor.co.jp/
¥558 million
50%
E*TRADE SECURITIES CO., LTD.
Comprehensive on-line securities businesses
Apr. 1999
Minato-ku, Tokyo
http://www.etrade.ne.jp/
¥5,649 million
35%
e-Commodity Co., Ltd.
¥14,765 million
¥4,802 million
¥4,833 million
¥2,190 million
On-line commodity futures trading
¥259,876 million
Oct. 2000
Chuo-ku, Tokyo
http://www.ecommodity.co.jp/
¥20,638 million
¥674 million
40%
11
e-Finance Segment
Company name
Stock code
Date established
Type of business
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Total assets
Fides Securities Corporation
Securities businesses
May 1998
Minato-ku, Tokyo
http://www.fides-sec.co.jp/
¥560 million
47%
Finance All Corporation
Information service for financial products, managing company
for financial-related businesses
Mar. 2001
Minato-ku, Tokyo
http://www.financeall.jp/
¥1,758 million
21%
Sep. 2003 (Consolidated)
8437 (Hercules)
¥7,577 million
Sep. 2003
¥297 million
¥241 million
¥32,500**
¥64 million
¥200,000
¥13,035 million
¥8,085 million
¥3,328 million
190 thousand shares
Finance All Service Co., Ltd.
Risk management and credit cards businesses
Feb. 2003
Minato-ku, Tokyo
http://www.financeall.ne.jp/
¥2 million
21%
Gomez Japan K.K.
Evaluations and business support for EC sites
Mar. 2001
Chiyoda-ku, Tokyo
http://www.gomez.co.jp/
¥152 million
51%
GOODLOAN Co., Ltd.
Housing loans and loan broker
Nov. 2000
Minato-ku, Tokyo
http://www.goodloan.co.jp/
¥127 million
21%
Home Loan Consulting Co., Ltd.
Housing loan consulting and brokerage services
Mar. 2004
Minato-ku, Tokyo
http://www.homeloan.co.jp/
¥10 million
21%
Intechstra, Inc
Business consulting for intellectual property
Dec. 2000
Shibuya-ku, Tokyo
http://www.intechstra.com/
¥90 million
100%
Morningstar Asset Management
Co., Ltd.
Asset management consulting, asset management and advisory
services for financial institutions
May 2001
–
Minato-ku, Tokyo
¥15 million
50%
Morningstar Japan K.K.
On-line information and rating service for mutual funds and other
financial products
Mar. 1998
Minato-ku, Tokyo
http://www.morningstar.co.jp/
¥1,676 million
50%
Dec. 2003 (Consolidated)
4765 (Hercules)
¥924 million
Jun. 2000
¥115 million
¥136 million
¥1,750,000**
¥69 million
¥213,000
¥5,210 million
¥7,022 million
¥4,955 million
65 thousand shares
12
Office Work Corporation
Provision of accounting and other back-office services
Jul. 2000
Minato-ku, Tokyo
http://www.office-work.co.jp/
SB FINANCE KOREA CO., LTD.
Strategic base in South Korea for general financial operations
Jun. 2000
–
SBI ASSET MANAGEMENT CO., LTD.
Asset management and management of investment trust assets
Sep. 1987
Minato-ku, Tokyo
http://www.sbiam.co.jp/
South Korea
¥100 million
100%
KRW15,000M
100%
¥424 million
45%
Company name
Stock code
Date established
Type of business
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Total assets
SBI CAPITAL Co., Ltd.
Operation and management of LBO funds
Apr. 2001
–
Minato-ku, Tokyo
¥14 million
47%
SOFTBANK INVESTMENT
CORPORATION
Comprehensive financial services provider
Jul. 1999
Minato-ku, Tokyo
http://www.sbinvestment.co.jp/
¥5,131 million
47%
Mar. 2004 (Consolidated)
8473 (TSE 1st/OSE 1st)
¥35,364 million
Dec. 2000
¥8,086 million
¥9,068 million ¥4,256 million
¥166,666**
¥121,000
¥396,644 million
¥132,315 million
¥47,464 million
2,317 thousand shares
SophiaBank, Limited
Think tank
Jun. 2000
Minato-ku, Tokyo
http://www.sophiabank.co.jp/
¥58 million
74%
SWAN Credit Corporation.
Business loans
Aug. 2001
Minato-ku, Tokyo
http://www.swan-credit.co.jp/
¥180 million
90%
TechTank Corporation
Provision of IT solutions
Aug. 2001
Minato-ku, Tokyo
http://www.techtank.co.jp/
¥32 million
21%
VeriTrans, Inc.
On-line settlement service for EC stores and malls
Apr. 1997
Minato-ku, Tokyo
http://www.veritrans.co.jp/
¥71 million
10%
WEB-Lease Co., Ltd.
General leasing services, mainly in IT field
Nov. 1999
Minato-ku, Tokyo
http://www.weblease.co.jp/
¥95 million
21%
WORLD NICHIEI FRONTIER Securities
Co., Ltd.
Securities businesses
Feb. 1945
Chuo-ku, Tokyo
http://www.wnfrontier.co.jp/
¥3,966 million
26%
8696 (Hercules)
¥11,655 million
Feb. 2004
¥3,615 million
¥3,675 million
–
¥5,559 million
¥694
¥80,605 million
¥17,077 million
¥35,469 million
Note: On February 2, 2004, WORLD NICHIEI SECURITIES Co., Ltd., as the surviving company, was merged with SOFTBANK FRONTIER SECURITIES CO., LTD. and renamed WORLD NICHIEI FRONTIER Securities Co., Ltd.
ASCOT CO., LTD.
On-line broker for loans and introducing broker of credit cards for
consumers and companies
Oct. 1999
Minato-ku, Tokyo
http://www.webascot.jp/
Morningstar, Inc.
Mutual fund rating and analysis services
May 1984
Illinois, U.S.A.
http://www.morningstar.com/
UTOPIAN LIFE Co., Ltd
Broker for resort properties
Mar. 2001
–
Minato-ku, Tokyo
¥147 million
37%
US$90M
20%
¥9 million
30%
13
One reason is the success of unique sales methods, such as using distinctive mar-
Segment sales decreased ¥2,504 million, or 15%, to ¥14,415 million and the
keting activities for specific distribution channels. Also supporting the company’s
operating loss increased ¥521 million to ¥1,056 million. This performance mainly
solid position is the popularity of i-mode Style and other magazines for mobile
reflects lower sales of magazines and books at SOFTBANK Publishing Inc. amid
phone users and of NetRunner and other Internet magazines. The company will be
a prolonged slump in the publishing market.
concentrating on publications related to the mobile phone market, where more
growth is foreseen, and on business and general-interest books. At the same time,
the company will be forming alliances with other SOFTBANK Group members to
reinforce its ability to supply content and capture greater synergies between paper
A Realigned Business Portfolio Targets Opportunities in the Broadband Age
and Web media. One example is collaboration with SOFTBANK BB Corp. to pro-
Now that the broadband era has arrived, the Media & Marketing group has
duce and operate Yahoo! BB Broadband Guide, a Web site that uses Yahoo! BB
realigned its business portfolio with the aim of better focusing resources on the
Magazine to supply information on broadband content.
broadband content business. With the Tokyo head office of The Sports Nippon
In January 2004, ZDNet JAPAN, one of Japan’s largest comprehensive IT
Newspaper, the segment has a BB content business that provides articles and
information sites with 3.78 million unique users (March 2004), was relaunched
images through the Sponichi-Plus service and a service that transmits Serie A
as ITmedia brand. The site supplies an even larger assortment of specialized
soccer broadcasts and other events. There is also an entertainment business
overseas IT information, a major feature of ZDNet JAPAN. In addition, ITmedia
that distributes video broadcasts of horse races of the Japan Racing Horse As-
has a buying service with price comparisons, a employment information service
sociation, a music content business that supplies Internet radio broadcasts and
for changing jobs, a market research service and more. The larger service lineup
a streaming service to transmit performances from clubs with live music, and
will allow ITmedia to provide information and content to a broader spectrum of
other activities. Content businesses that had been conducted individually by com-
IT users.
panies affiliated with SOFTBANK Media & Marketing Corp. are now centralized
in SOFTBANK Media & Marketing Corp. Centralizing these activities gives the
segment the framework required to develop a comprehensive line of broadband
The Ohanashi Ehon Club, an e-library Website
content and conduct a content aggregation business. To raise profitability, the
segment is forming ties with an increasingly diverse range of content providers,
including ISPs, mobile phone carriers and Internet cable TV companies. As part
of efforts to develop new content, the segment has set up a digital picture book
library called Ohanashi Ehon Club and is taking other steps to develop an
e-library (e-book) business, targeting a market expected to emerge in the coming years and grow considerably.
As a publisher of IT-related magazines and books, SOFTBANK Publishing Inc.
is feeling the effects of the contraction of the market for IT publications. However,
this company is preserving its prominent position within the publishing industry.
(http://www.ohanashiehon.com/)
SOFTBANK Media & Marketing Corp.’s FY2004 Summary of Consolidated Business Results (Unaudited)
Statement of Income
Balance Sheet
(Millions of yen)
(Millions of yen)
Sales
14,415
Current assets
Cost of sales
10,783
154
50
Intangible assets
357
Minority interests
19
Selling, general and
administrative expenses
Operating income
Ordinary income
Net income
4,688
(1,056)
(936)
Deferred charges
Total assets
7,578
3,927
–
12,017
Current liabilities
7,629
Common stock
1,300
Total
4,550
14
4,318
12,017
Company name
Stock code
Date established
Type of business
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Total assets
SOFTBANK Media & Marketing Corp.
Operating holding company for Media & Marketing segment and
sale of music and sports-related content
Mar. 1999
Minato-ku, Tokyo
http://www.softbankmm.co.jp/
–
100%
Click2learn Japan K.K.
Sale of e-learning software using corporate LANs and the Internet,
production of training courses
May 2000
Minato-ku, Tokyo
http://www.click2learn.co.jp/
¥231 million
54%
EC RESEARCH CORP.
Production and sale of IT market research reports, IT market surveys
and consulting services under consignment
Sep. 2000
Minato-ku, Tokyo
http://www.ec-r.co.jp/
¥120 million
100%
JaJa Entertainment Inc.
Provision of predictions for horse races and distribution of other
entertaining BB content services
Oct. 2000
Minato-ku, Tokyo
http://www.jaja-uma.com/
¥190 million
70%
SBMM Creative Inc.
e-library business and other new businesses
Mar. 2004
–
Minato-ku, Tokyo
¥179 million
100%
SOFTBANK ITmedia Inc.
(formerly SOFTBANK ZDNet Inc.)
Comprehensive IT information site
Dec. 1999
Minato-ku, Tokyo
http://www.itmedia.co.jp/
¥928 million
95%
SOFTBANK MOBILE CORP.
Planning, development and formulation of information
strategies for various services based on mobile Internet access
May 2000
Chuo-ku, Tokyo
http://www.softbank-mobile.co.jp/
¥300 million
100%
SOFTBANK Publishing Inc.
IT and Internet-related publishing
Mar. 2000
Minato-ku, Tokyo
http://www.softbankpub.co.jp/
¥600 million
100%
cyber communications inc.
4788 (Mothers/Hercules)
¥13,083 million
¥182 million
¥196 million
¥(804) million
Jun. 1996
Chuo-ku, Tokyo
http://www.cci.co.jp/
Advertising agency for Internet
¥15,080 million
Sep. 2000
¥507 million
¥505 million
¥350,000
¥7,312 million
¥275 million
¥214,000
¥8,365 million
¥14,569 million
¥2,907 million
¥290 million
27%
¥4,676 million
254 thousand shares
Englishtown Ltd.
On-line provision of live English conversation classes and an English
educational service
Jan. 2001
Shibuya-ku, Tokyo
http://www.englishtown.com/
¥396 million
30%
M.P.Technologies, Inc
Development, maintenance and operation of broadband distribution
system solutions and ASP solutions
Sep. 2001
Shinjuku-ku, Tokyo
http://www.mptech.co.jp/
¥518 million
34%
Jul. 2003 (Non-consolidated)
3734 (Mothers)
Tribeck Strategies, Inc.
¥966 million
Mar. 2004
¥196 million
¥213 million
¥157 million
¥780,000
¥2,080,000
Consulting for corporate Internet marketing strategies
¥937 million
¥7,384 million
Sep. 2001
Chiyoda-ku, Tokyo
http://www.tribeck.jp/
¥710 million
10 thousand shares
¥60 million
36%
15
Broadmedia Segment
enables an authentic game-on-demand service without any downloading. Fur-
Segment sales increased ¥1,056 million, or 9%, to ¥12,968 million and the oper-
thermore, the segment early on began network solutions businesses, such as
ating loss increased ¥1,591 million to ¥3,251 million. This was mainly attribut-
the Broadmedia CDN service, to ensure the efficient distribution of rich content
able to depreciation expenses, leasing fees, development-related expenses,
over broadband networks. The provision of the Broadmedia CDN service through
content expenses and others at BB Cable Corporation, which operates the BB
BBIX, Inc, which has a nationwide distributed Internet exchange, makes possible
Cable TV** service via ADSL network.
even faster distribution of content. The segment will continue to promote these
services with the aim of building a larger-scale, unique CDN network in Japan.
Club iT Corporation, the Broadmedia segment’s marketing arm, supports
the BB Cable TV service of its subsidiary, BB Cable Corporation. In addition, this
company is concentrating on operating the Club iT membership service and on
Enhancing Content
The business objective of the Broadmedia segment is the complete integration
of broadcasting and telecommunications. Translating this goal into reality is the
sales promotion activities for Yahoo! BB and other broadband-related services.
** BB Cable TV changed the name of its service to BBTV on June 1, 2004.
BB Cable TV service of BB Cable Corporation, which was the first company to
register as a cable television broadcaster on telecommunications services. This
service uses SOFTBANK BB’s backbone network and ADSL to offer broadcast
BB Cable TV portal site image
and video-on-demand services, thus integrating broadcasting and telecommunications through a single broadband connection. As at the end of March 2004,
BB Cable TV had 22 broadcast channels and 2,300 video titles. BB Cable
Corporation will continue to upgrade its services by adding channels and video
titles and taking a variety of actions to make the service even more popular.
Offering more content is a priority of the Broadmedia segment in order to
support future growth. For this purpose, the segment is now incubating a number of companies. One is BB Factory Corporation, operator of Channel BB, a dedicated game channel on air on BB Cable TV and other networks. Another is Oy
Gamecluster Ltd., owner of a revolutionary technology called G-cluster that
(As of April 30, 2004)
SOFTBANK Broadmedia Corporation’s FY2004 Summary of Consolidated Business Results (Unaudited)
Statement of Income
Balance Sheet
(Millions of yen)
(Millions of yen)
Sales
12,968
Current assets
9,724
Current liabilities
5,605
Cost of sales
10,922
1,399
6,490
Intangible assets
1,711
Minority interests
5,297
Operating income
(3,251)
Deferred charges
Ordinary income
(3,527)
Total assets
Net income
(3,108)
11,731
0
24,568
11,938
Common stock
10,750
Total
16
534
24,568
Broadmedia Segment
Company name
Stock code
Date established
Type of business
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Total assets
SOFTBANK Broadmedia Corporation
Operating holding company of Broadmedia segment
Mar. 2000
Shibuya-ku, Tokyo
http://www.broadmedia.co.jp/
–
100%
ALISS-NET Co., Ltd.
On-line distribution of lifestyle information, production and
sale of computer software, terminals and peripherals
Nov. 1999
Chuo-ku, Fukuoka
http://www.aliss-net.ne.jp/
¥432 million
51%
BB Cable Corporation
Broadcasting and BB Cable TV VOD service using the
Yahoo! BB ADSL connection service
Dec. 2001
Shibuya-ku, Tokyo
http://www.bbcable.tv/
¥180 million
90%
BB Factory Corporation
Licensed communications satellite broadcaster
Apr. 1998
Shinjuku-ku, Tokyo
http://www.ch-bb.jp/
¥297 million
94%
Broadmedia Research Institute, Inc
Distribution and sale of content and related businesses
Sep. 2001
Shibuya-ku, Tokyo
http://www.bri.jp/
¥5,653 million
100%
CDN Solutions K.K.
Provision of Web and streaming content distribution solutions
Apr. 2001
Chuo-ku, Tokyo
http://www.cdn-sol.co.jp/
¥298 million
100%
Club iT Corporation
Planning and operation of Club iT, a members-only
organization, and packaged sales of Internet lines
Nov. 1998
Shibuya-ku, Tokyo
http://www.clubit.co.jp/
¥4,743 million
90%
4347 (Hercules)
¥11,364 million
Mar. 2002
¥(559) million
¥(599) million
¥1,200
¥(1,178) million
¥1,650
¥6,375 million
¥12,360 million
¥1,352 million
EMBAN-YA, Inc.
Production and distribution of visual content and advertising
planning
Nov. 2000
Shinjuku-ku, Tokyo
http://www.embanya.com/
¥9 million
94%
iM Networks, Japan K.K.
Provision of tuning service for Webcasting (Internet radio)
Dec. 2001
Shinjuku-ku, Tokyo
http://www.imnetworks.co.jp/
¥198 million
70%
Oy Gamecluster Ltd.
Development and provision of network solutions for the distribution
of interactive entertainment
Jun. 1997
Finland
http://www.g-cluster.com/
¥682 million
100%
Xdrive Japan K.K.
Provision of on-line storage solutions
Apr. 2001
Chuo-ku, Tokyo
http://www.xdrive.co.jp/
¥258 million
100%
Fishing Vision Co., Ltd.
Production and sale of programs for Tsuri Vision broadcasts
using CS digital broadcasting platforms and cable TV
Mar. 1998
Shinjuku-ku, Tokyo
http://www.fishing-v.co.jp/
¥1,225 million
40%
Nihon Eiga Satellite Broadcasting
Corporation
Licensed communications satellite broadcaster
Feb. 2000
Minato-ku, Tokyo
http://www.nihon-eiga.co.jp/
¥100 million
15%
17
In the auction business, an infrastructure has been completed on a system
Segment sales increased ¥25,854 million, or 68%, to ¥64,054 million and
that can handle more than 10 million items. In addition, there was a large decrease
operating income was up ¥15,700 million, or 93%, to ¥32,582 million. Amid
in monthly system-use fees. Priority was placed on attracting more auction stores
signs of recovery in the overall Japanese advertising market, Yahoo Japan
(corporate stores), such as by offering package sales for stores that are also
1
Corporation aggressively sold major advertising products to National Clients* ,
located in Yahoo! Shopping, resulting in steady growth in the number of these
such as Brand Panels for top pages and others, capturing more advertising
stores. Measures such as tighter supervision to shut out the fraudulent submis-
business from these clients. Sponsor Site related sales were also favorable,
sion of goods and introduction of services to eliminate sources of concern among
helping to raise advertising sales to a new record high. In the auction business
users about auction transactions are now being taken so that people can use
at Yahoo Japan Corporation, a new system was introduced to boost its server
these auctions with complete peace of mind. Additionally, a variety of campaigns
capacity and enhance its infrastructure, enabling it to handle a large volume of
will be conducted and services enhanced to increase the number of people who
items. Moreover, measures taken to increase the number of auction stores
use the auction business.
Yahoo Japan Corporation continued to enlarge its service lineup by cooper-
were successful. As a result, auction sales increased substantially.
Note:Operating results of the Yahoo! BB business of Yahoo Japan Corporation are
included in the Broadband Infrastructure segment (see page 4).
ating with other companies to form alliances and joint ventures. In the listing
business, Indival, Inc was jointly established with RECRUIT CO., LTD. This company has started sales activities to prepare for the provision of its Job-Seeker
A Broader and More Powerful Line of Services
Registration Employment Support Service, a new Internet-based service that
Yahoo Japan Corporation* , the core member of the Internet Culture segment,
primarily targets the market for short-term jobs. In the media business, a joint
conducts a variety of businesses by drawing on its powerful brand and techno-
venture called Y’s Insurance Inc. was established with Aon Risk Service Japan
logical skills as well as unsurpassed reach, as can be seen in its more than 20
Ltd., which is a group company of major U.S. insurer Aon Corporation, to prepare
billion monthly page views (March 2004). This company has six business divi-
to start an on-line insurance agency business. The new company will sell a diverse
sions to facilitate the optimal allocation of management resources, clarification
selection of life and non-life insurance. In the shopping business, an agreement
of accountability and speedy decision-making.
was reached to collaborate with PIA CORPORATION in the on-line sale of tickets
2
In the advertising business, which spans all business divisions, a steadily
for events of all types. Preparations are moving forward toward the launch of
increasing number of advertisers are viewing the Internet as an advertising medium
the new service, Yahoo! Ticket, which will allow customers to search for and
on a par with television and other established media. Behind this trend is the rising
purchase a broad range of tickets.
number Internet users and growing utilization of broadband networks. To fully
capitalize on the resulting opportunities, high-profile sales activities are targeting
products such as Super Banners and Yahoo! Billbord that leave a strong impres-
*1
Advertisers that make extensive use of other forms of mass media
*2
Trading of Yahoo Japan Corporation shares was moved from JASDAQ to the first section of the Tokyo
Stock Exchange in October 2003.
sion with users. Another key activity is proposals for the use of V Banners, which
can deliver advertisements with a large volume of data and powerful visual impact.
Joint campaigns to raise awareness of advertisers’ brands through Internet adverAverage Daily Volume and Transaction Rate in Auction Business
tisements are another theme. One example is the joint formulation of advertising
campaigns with national clients to conduct large-scale promotions.
(Millions of yen)
(%)
Average daily volume*1
1,600
100
80
1,200
60
800
Summary of Internet Culture Segment Business Results
from FY2004 Consolidated Results of SOFTBANK CORP.
40
400
(Millions of yen)
Sales
64,054
Operating expenses
31,472
Operating income
32,582
Assets
18
218,780
20
Transaction rate*2
0
03/3
4 5 6 7 8 9 10 11 12 04/1 2 3
*1
Prior to cancellations and other revisions
*2
Range of daily transaction rate in each month
0
Company name
Stock code
Yahoo Japan Corporation
4689 (TSE 1st)
Date established
Type of business
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Total assets
Jan. 1996
Minato-ku, Tokyo
http://www.yahoo.co.jp/
Internet services
¥75,776 million
Nov. 1997
Location
¥41,211 million ¥41,308 million ¥24,826 million
¥1367.19**
¥1,270,000
¥82,410 million
¥2,007,697 million
¥6,372 million
42%
¥59,806 million
BridalNet, Inc
Provision of on-line matchmaking services
Dec. 1998
Minato-ku, Tokyo
http://www.bridalnet.co.jp/
e-Shopping! Books CORP.
On-line sales of books and other products
Aug. 1999
Chuo-ku, Tokyo
http://www.esbooks.co.jp/
¥4,583 million
¥12 million
¥9 million
¥10 million
¥641 million
¥96 million
42%
¥216 million
32%
¥111 million
Indival, Inc
On-line provision of information to job seekers
Feb. 2004
–
Minato-ku, Tokyo
¥50 million
25%
Net Culture KK
Holding company that invests in and manages Internet Culture
businesses
Mar. 2001
–
Minato-ku, Tokyo
¥1,000 million
100%
Tavigator, Inc.
On-line travel agency
Mar. 2000
Minato-ku, Tokyo
http://www.tavigator.co.jp/
¥40 million
41%
Y’s Agencies Inc.
Planning and sales of advertisements
Aug. 2001
–
¥4 million
42%
¥1,666 million
¥42 million
¥42 million
¥26 million
Minato-ku, Tokyo
¥395 million
¥43 million
Y’s Insurance Inc.
Agent for life and non-life insurance
Nov. 2003
–
Minato-ku, Tokyo
¥12 million
25%
Y’s Sports Inc.
Collection of sports news and information and production of
articles and other content
Dec. 1996
Minato-ku, Tokyo
http://sportsnavi.yahoo.co.jp/
¥41 million
42%
INTAGE Interactive Inc.
On-line research service
Oct. 2002
Higashikurume, Tokyo
http://www.intage-interactive.co.jp/
¥10 million
21%
Internet Research Institute, Inc.
Consulting, design, construction and operation of IP networks,
and marketing and sales agency services
Dec. 1996
Shinjuku-ku, Tokyo
http://www.iri.co.jp/
¥99 million
7%
Jun. 2003 (Consolidated)
4741 (Mothers)
¥11,306 million
Dec. 1999
¥(349) million
¥(1,135) million ¥(1,487) million
¥195,000**
¥580,000
¥10,354 million
¥3,702 million
¥4,587 million
92 thousand shares
Yahoo! Deutschland GmbH
Internet services
Jan. 1997
Munich, Germany
http://de.yahoo.com/
US$0.45M
30%
Yahoo! France SARL
Internet services
Nov. 1996
Paris, France
http://fr.yahoo.com/
US$0.45M
30%
Yahoo! Korea Corporation
Internet services
Oct. 1997
Seoul, South Korea
http://kr.yahoo.com/
KRW333M
31%
Yahoo! UK Limited
Internet services
Aug. 1996
London, U.K.
http://uk.yahoo.com/
US$0.9M
30%
Yahoo! Inc.
Internet services
Mar. 1995
California, U.S.A.
http://www.yahoo.com/
US$84M
4%
YHOO (NASDAQ US)
US$1,625M
Apr. 1996
US$295M
US$1.08**
–
US$237M
US$48.47
US$5,931M
US$1,275M
US$4,363M
665 million shares
19
In the broadband network solutions business, this segment offers consult-
Sales at SOFTBANK TECHNOLOGY CORP. decreased ¥3,143 million, or 12%, to
ing, designs, construction, operating and maintenance services for network sys-
¥22,555 million. There was an increase in sales relating to the backoffice ser-
tems using broadband infrastructures. The segment has had particular success
vice of SOFTBANK TECHNOLOGY CORP., which handles everything from sales to
with the provision of comprehensive solutions embodying many elements. A key
settlement and collection for e-commerce sites. However, net sales in the ADSL
element is BB-Solution, which employs exclusive technology rooted in broad-
sales support service declined. Operating income decreased ¥260 million, or 21%,
band to offer services such as BB-WAN, BB-Office and BB-APPL. This solution
to ¥1,000 million. This was mainly the result of a decline in the gross margin in
service spans many fields, including communication systems such as IP tele-
the broadband solution business and increase of personnel expenses associated
phony, wireless LAN and TV conferencing, image distribution systems such as
with new businesses at SOFTBANK TECHNOLOGY CORP.
remote medical imaging and remote surveillance services, e-learning systems
Note:The figures shown here are consolidated financial highlights of SOFTBANK
TECHNOLOGY CORP., which represents the majority of the operations of the
Technology Services segment.
and much more. The increasing use of broadband is spawning new markets. This
segment remains committed to proposing new technology services for these
markets in order to establish more opportunities to earn profits.
In the system solution business, the segment supplies an integrated line of
Technology Services for the Broadband Era
technology services that begin with the design and construction of systems for
SOFTBANK TECHNOLOGY CORP., the central member of the Technology Ser-
business processes and include the operation and maintenance of those systems.
vices segment, is engaged in the e-business services, system solutions and broad-
As utilization of broadband grows, there will be enormous increases in the
band network solutions businesses. As the Internet continues its rapid transition
volume of data that can be processed and stored. These advances are generat-
to broadband, the company is dedicated to offering total solutions and services
ing demand for reliable system operation and maintenance services. Further-
based on broadband networks with the theme of “reducing companies’ expenses
more, due to rising concerns about security, there is also rapid growth in the
and improving productivity.” Through this stance, SOFTBANK TECHNOLOGY CORP.
number of companies reviewing their systems and operating environment. To
is diversifying its profit structure.
meet this demand, the segment is taking vigorous actions to expand security-related
In e-business services, the segment operates ECBuyers, an e-commerce site
that sells PC software and related devices. Utilizing know-how gained from the
services, everything from assistance in formulating security policies to the sale of
security-related products and the architecture and operation of systems.
operation of this site, the segment offers consulting services, which extend from
the structuring of e-commerce sites to their operation, as well as the provision
Business Domains of the Technology Services Segment
of back-office services under consignment, including tasks such as order pro-
Broadband Solution & Service Provider
cessing, shipments, sales management and settlements. Additionally, rising sales
through e-commerce sites are leading to higher sales in this segment from the
operation of call centers that respond to customer inquiries. NeBOS, an ASP
e-Business Service
System Solution
ASP and outsourcing services for e-businesses,
contact center service
System integration service, development of core
and task applications
service that offers all of these e-commerce site back-office services, and
ContactPocket, an ASP service that sells contact center solutions, are both mak-
Broadband Solution
ing good progress in increasing their sales.
Provision of broadband solutions to companies,
network design, construction and operation
SOFTBANK TECHNOLOGY CORP.’s FY2004 Summary of Consolidated Business Results
Statement of Income
Balance Sheet
(Millions of yen)
(Millions of yen)
Sales
22,555
Current assets
Cost of sales
17,944
298
680
Intangible assets
336
Minority interests
102
3,610
Operating income
1,000
Deferred charges
Ordinary income
1,096
Total assets
Net income
15,217
2,779
–
18,632
Current liabilities
12,105
5,743
Common stock
Total
631
18,632
702
* The figures shown here are consolidated financial highlights of SOFTBANK TECHNOLOGY CORP., which represents a majority of the operations of the Technology Services segment.
20
Company name
Stock code
SOFTBANK TECHNOLOGY HOLDINGS
CORP.
Date established
Type of business
Location
SB investment
SB ownership
URL
Revenue
Date of IPO
Share price
Operating holding company of Technology Services segment
Total assets
Oct. 2000
–
Shinjuku-ku, Tokyo
–
100%
Note: On June 18, 2004, this company was dissolved following its merger with SOFTBANK CORP., which was the surviving company.
Sale of website access data analysis software packages and
provision of marketing services
Sep. 2000
Chuo-ku, Tokyo
http://www.aipbridge.co.jp/
¥377 million
76%
AsiaVision Japan Inc.
Studies, development and sale concerning sophisticated data
communication devices using broadband
Mar. 2002
Chuo-ku, Tokyo
http://www.avj.co.jp/
¥34 million
60%
EC Architects Corp.
Provision of consulting, system designs and project management for
EC solutions
Apr. 2000
Chuo-ku, Tokyo
http://www.ec-architects.co.jp/
¥86 million
57%
E-Cosmos, Inc.
Technical support, business consulting and other services for
EC businesses
Jan. 2000
Shinjuku-ku, Tokyo
http://www.e-cosmos.co.jp/
¥89 million
60%
SOFTBANK TECHNOLOGY CORP.
Provision of broadband-based solutions and services for networks,
applications and operations
Aug. 1997
Shinjuku-ku, Tokyo
http://www.tech.softbank.co.jp/
¥117 million
60%
AIP Bridge CORP.
Note: Technology Services Segment from April 2004
4726 (JASDAQ)
¥22,555 million
Jul. 1999
¥1,000 million
¥1,096 million
¥1,533.33**
¥702 million
¥2,500
¥18,632 million
¥15,918 million
¥5,743 million
e-Commerce Technology Corp.
Provision of system design, construction and operation for
EC and B-to-B businesses
Jun. 2000
Chuo-ku, Tokyo
http://www.ectech.co.jp/
i2ts, inc.
Provision of data center hosting service
Sep. 1999
Minato-ku, Tokyo
http://www.i2ts.com/
USTC E-BUSINESS Technology
Co., Ltd.
Provision of information system development services in China and
to Japan
Nov. 2000
–
China
¥44 million
30%
¥136 million
18%
¥70 million
18%
21
Overseas Funds and Other Businesses
The SOFTBANK Group’s overseas operations are conducted mainly by SOFTBANK
through its investment activities with insights on technologies in the global
Holdings Inc. (SBH), which conducts strategic direct investments, fund manage-
marketplace, market trends and expert knowledge in the Internet field. In addi-
ment, investments in funds and a wide range of other investment activities. SBH
tion to the activities of SBH, the SOFTBANK Group conducts investment activi-
performs an important strategic role as well: using to providing SOFTBANK CORP.
ties in Japan, China, South Korea and other regions.
Overseas Funds
Company name
Date established
Maturity
Type of business
Category
Revenue
Operating income Ordinary income
Net income
Primary region*1
SB commitment*2 SB ownership*3
Fund size
Portfolio companies*4
URL
Total assets
Overseas Operation Companies/Overseas Funds
22
SB CHINA HOLDINGS PTE LTD
A
Holding company; supervises China-based operations and
conducts venture fund business
Jan. 2000
Shanghai, China
–
http://www.sbcvc.com/
US$90M
90%
18
A
Venture capital fund
Sep. 2000
10 years
–
Europe
SB Europe Capital L.P.
US$155M
100%
6
A
Jul. 1999
10 years
–
U.S.A.
SOFTBANK Capital Partners
US$735M
51%
13
SOFTBANK Korea Co., Ltd.
A
Venture capital operations in South Korea
Sep. 2002
Seoul, South Korea
–
http://www.softbank.co.kr/
¥14,523 million
–
100%
12
SB Life Science Ventures I, L.P.
A
Venture capital fund in the life science field
Jul. 2001
U.S.A.
10 years
http://www.sblifescience.com/
US$30M
34%
9
SOFTBANK Technology
Ventures IV L.P.
Nov. 1997
10 years
–
U.S.A.
B
US$42M
13%
5
SOFTBANK Technology
Ventures V L.P.
Jul. 1999
10 years
–
U.S.A.
B
US$183M
30%
24
B
Apr. 2000
10 years
–
U.S.A.
SOFTBANK US Ventures VI L.P.
US$608M
97%
81
A
Apr. 2000
5 years
–
South Korea
SOFTBANK Ventures Fund 1
KRW30,000M
KRW50,000M
60%
15
A
Venture capital fund targeting broadband-related companies
Mar. 2001
10 years
–
Asia-Pacific
SB Asia Infrastructure Fund L.P.
US$4M
1%
14
–
US$155M
US$1,450M
US$89M
US$313M
US$606M
US$627M
US$404M
Overseas Portfolio Companies
Alibaba.com Corporation
–
Operation of B-to-B market in China
Mar. 1999
Hangzhou, Zhejiang, China
http://www.alibaba.com/
US$17M
27%
GSI Commerce, Inc.
–
e-Commerce solutions for sporting goods companies and others
Dec. 1998
Pennsylvania, U.S.A.
http://www.gsicommerce.com/
US$48M
10%
National Leisure Group, Inc.
–
Travel agency
Jan. 1995
Massachusetts, U.S.A.
http://www.nlg.com/
US$38M
26%
Other Businesses
Company name
Stock code
Date established
Type of business
Location
Revenue
Date of IPO
Share price
Total assets
AtWork Corporation
Outsourcing services for personnel, administrative,
technological and other tasks
Apr. 1999
Chuo-ku, Tokyo
http://www.atwork.co.jp/
SOFTBANK Holdings Inc.
Holding company
Mar. 1994
–
SB Holdings (Europe) Ltd.
Holding company
SB Sweden Aktiebolag
SOFTBANK Commerce
Korea Corporation
UTStarcom, Inc.
UTSI (NASDAQ US)
SB investment
SB ownership
URL
¥90 million
100%
Massachusetts, U.S.A.
–
100%
Dec. 1995
–
London, U.K.
–
100%
Holding company
Oct. 1999
–
Stockholm, Sweden
–
100%
Wholesaling and distribution of IT-related products in South Korea
Feb. 1991
Seoul, South Korea
http://www.softbank.co.kr/
¥7,228 million
85%
KRW43,077M
KRW(1,924) M
–
KRW6,179M
Manufacturer of IP networks and wireless equipment
US$1,964M
Mar. 2000
Other securities, etc.
US$274M
US$18.00
–
KRW30,934M
Oct. 1991
California, U.S.A.
http://www.utstar.com/
US$202M
US$28.75
US$2,226M
US$421M
KRW9,408M
US$38M
13%
US$879M
117 million shares
SB investment ........... Amount is based on the economic ownership ratio of SB, but does not include investments in operating holding companies, holding
and fund-related companies or investments made by affiliated companies and funds in individual companies.
SB ownership ............ Ownership refers to the ratio of economic ownership, but does not include investments made by affiliated companies or funds in
individual companies. Figures are rounded up or down to the nearest whole number.
Category .................... A: Funds managed by SOFTBANK CORP. B: Other funds
*1 Location of head office for incorporated funds
*2 SOFTBANK CORP. investment for incorporated funds
*3 For funds, SOFTBANK CORP. ownership as percentage of total fund size
*4 Portfolio companies do not include companies where investments have been written down to zero.
23
Investment Summary
SOFTBANK Group Investment Update
(As of March 31, 2004)
Investment Summary
Outline of Portfolio Companies
Amount of
investment
SB portion’s market
capitalization &
proceeds from sales
Multiple
Outstanding
investment balance
Investment sold*
¥ 704.6 billion
309.8 billion
¥2,878.3 billion
878.4 billion
4.09X
2.83X
Total
¥1,014.4 billion
¥3,756.7 billion
3.70X
Number of companies
801 (476 of which are direct investments)
Public companies included
56
(38 of which are direct investments)
* Names of portfolio companies are listed below.
Investment Outstanding and Sold
Investment by Region
(Number of companies)
(Billions of yen)
4,000
900
878.4
3,000
2,000
734.6
1,000
248.6
0
704.6
capitalization &
proceeds from sales
Amount of
investment
2003/3
capitalization &
proceeds from sales
Investment
sold
113
138
99
120
300
505
471
158
133
140
502
472
Japan
0
14
18
34
8
18
30
Number of Non-public
Public
companies companies companies
Public
2003/3
2004/3
2004/3
Public and Non-Public Investment
141
600
309.8
920.6
653.8
Amount of
investment
2,878.3
Outstanding
investment
balance as of
March 31
United States
Others
Type of Investment (Including duplicate investments)
(Billions of yen)
4,000
(Number of companies)
900
609.4
3,000
2,000
3,147.3
402.1
1,000
0
420
600
334.8
384
389
1,253.1
649.6
Non-public
companies
364.8
capitalization &
proceeds from sales
2003/3
Amount of
investment
capitalization &
proceeds from sales
388
362
Direct
investment
300
567.6
Amount of
investment
Public
companies
476
31
349
22
438
38
39
0
Public
Public
2003/3
2004/3
2004/3
Investment Return by Individual Company
Company name
(Billions of yen)
Amount of investment
Proceeds from sales
SB portion’s
market capitalization
SB portion’s
market capitalization
& proceeds from sales
Multiple
Yahoo Japan Corporation
7.7
55.3
2,007.7
2,063.0
267.92X
cyber communications inc.
0.5
8.8
14.6
23.3
46.67X
SOFTBANK TECHNOLOGY CORP.
3.3
82.2
15.9
98.1
29.73X
SOFTBANK INVESTMENT CORPORATION
6.0
39.3
132.3
171.7
28.61X
Cisco Systems, K.K.
1.8
32.1
0.1
32.2
17.92X
Trend Micro Incorporated
8.5
140.0
0.0
140.0
16.47X
M.P.Technologies, Inc
0.6
0.3
7.4
7.6
13.40X
Internet Research Institute, Inc.
0.3
0.4
3.7
4.1
12.33X
Vector Inc.
1.1
0.0
10.9
10.9
9.90X
Yahoo! Inc.
54.7
235.8
134.8
370.6
6.78X
1.8
2.2
7.0
9.2
5.24X
21.5
59.6
44.5
104.1
4.84X
Morningstar Japan K.K.
UTStarcom, Inc.
WORLD NICHIEI FRONTIER Securities Co., Ltd.
4.5
0.6
17.1
17.7
3.95X
SKY Perfect Communications Inc.
9.2
27.9
0.2
28.0
3.05X
2.95X
Fuji Staff, Inc
Aozora Bank, Ltd
Finance All Corporation
2.0
5.9
0.0
5.9
50.8
101.1
0.0
101.1
1.99X
6.6
0.5
8.1
8.5
1.30X
KFB Newbridge Investment, L.P.
16.3
17.2
0.0
17.2
1.05X
E*TRADE Group, Inc.
55.2
53.2
0.0
53.2
0.96X
1-800-FLOWERS.COM, Inc.
CNET Networks, Inc.
Digit Brain, Inc.
Key3Media Group, Inc.
Asia Global Crossing Ltd.
Total (24 companies)
24
Investment
through funds
2.3
2.1
0.0
2.1
0.93X
63.7
13.2
0.0
13.2
0.21X
8.8
0.0
1.0
1.0
0.11X
27.9
0.8
0.0
0.8
0.03X
45.2
0.0
0.0
0.0
0.00X
400.2
878.4
2,405.3
3,283.7
8.21X
Investment Summary by Region
(Billions of yen)
Total
Japan
Amount of investment 1,014.4
capitalization &
proceeds from sales 3,756.7
Multiple
3.70X
Number of companies
(Public
Multiple
801
United States
(Public
476)
6.00X
Number of companies
56)
(Direct investments
518.5
capitalization &
proceeds from sales 3,110.8
502
30)
(Direct investments
607.7
Multiple
1.52X
Number of companies
285)
399.9
capitalization &
proceeds from sales
158
(Public
18)
(Direct investments
63)
South Korea
capitalization &
proceeds from sales
Europe
China
8.7
0.30X
Number of companies
(Public
capitalization &
proceeds from sales
29
0)
(Direct investments
(Public
61
3)
(Direct investments
56)
4.7
Multiple
29)
13.5
24.0
0.61X
Number of companies
capitalization &
proceeds from sales
Multiple
Multiple
29.5
39.5
(Public
13.5
capitalization &
proceeds from sales
0.8
0.06X
Number of companies
37
14
(Public
4)
(Direct investments
Multiple
0.34X
Number of companies
Others
1)
(Direct investments
32)
11)
Note: The amount of investment, SB portion’s market capitalization & proceeds from sales and other data for
India and Latin America are included in “Others.”
Method Used to Analyze Investment Activities
1. Statistical Sources
Investee
O: included in statistics
Investor
Holding companies
Cross-shareholdings and others
Operating companies
Number of companies
Number of companies
Internet-related
Others
SOFTBANK CORP.
–
–
O
O
O
–
Holding companies (subsidiaries)
–
–
O
O
O
–
Operating companies (subsidiaries)
–
–
–
O
O
–
Notes:
1. Portfolio company investments by operating companies are included only in the number of companies.
2. Investments from affiliates are not included.
3. Cross-holdings and similar investments in all companies other than those involved in Internet-related businesses are not included in the number of companies or amount of investment.
4. Multiple Group investments in companies are netted out to obtain figures for the number of companies. Companies using the compulsory devaluation method are not included in the number of companies.
5. Figures include portfolio companies through funds in which SOFTBANK CORP. and its subsidiaries have invested (including indirect holdings).
2. Calculation Method
a. Amounts of investments and SB portion’s market capitalization are calculated based on SB’s economic interest. For funds, economic interest is calculated based on SB’s commitment.
b. Investments in publicly owned companies are valued at market as of March 31, 2004. Investments in privately owned companies are valued at investment costs. For devalued companies, the book value is
used as market value to calculate returns. Fund investments are based on quarterly reports issued by the funds.
c. U.S. dollar-denominated overseas investments and SB portion’s market capitalization are translated into yen at US$1=¥105.69, the closing exchange rate at the end of March 2004. Closing exchange rates
as of this date are used for translations of other currencies as well. U.S. dollar-denominated overseas investments and SB portion’s market capitalization as of March 31, 2003 are translated into yen at
US$1=¥120.20, the closing exchange rate at the end of March 2003. Closing exchange rates as of this date are used for March 2003 translations of other currencies as well.
25
Financial Information
Major Financial Indicators (Years ended March 31)
FY2004
FY2003
FY2002
FY2001
517,393
(54,893)
–
(20,705)
(76,744)
(107,094)
–
406,892
(91,997)
–
(69,781)
(71,474)
(99,989)
–
405,315
(23,901)
–
(10,024)
(119,939)
(88,755)
–
397,105
16,431
4.1
28,866
87,009
36,631
9.2
340,795
188,232
257,396
946,331
27.2
88.9
132.4
73.1
209.2
121.9
365,644
232,016
465,326
1,163,678
40.0
109.9
78.6
49.9
165.1
101.4
413,442
243,042
424,261
1,146,083
37.0
96.3
97.4
57.3
183.9
110.3
(83,829)
81,878
306,390
290,980
437,132
(68,600)
119,749
(17,615)
27,805
147,526
(79,123)
39,751
1,313
(34,479)
119,855
(91,598)
(42,612)
24,548
(76,200)
159,105
(43.2)
(15.5)
(27.7)
(4.6)
(20.0)
(9.0)
9.1
42.5
Per Share Data (¥):
Net income
Net income after retroactive adjustment
Net assets
Net assets after retroactive adjustment
Cash dividends
Cash dividends after retroactive adjustment
(314.72)
(314.72)
677.40
677.40
7.00
7.00
(296.94)
(296.94)
767.56
767.56
7.00
7.00
(263.53)
(263.53)
1,381.31
1,381.31
7.00
7.00
110.47
110.47
1,260.14
1,260.14
7.00
7.00
Shares outstanding (thousands of shares)
Number of public companies
351,404
177
103
14
335,293
269
116
14
336,872
285
113
17
336,677
216
117
21
Results of Operations:
Revenues
Operating (loss) income
Ratio of operating income to revenues (%)
EBITDA
Income (loss) before income taxes
Net (loss) income
Ratio of net income to revenues (%)
Financial Position (at fiscal year-end):
Interest-bearing debts
Net interest-bearing debts
Total assets
Equity ratio (%)
Current ratio (%)
Debt/equity ratio (%)
Net debt/equity ratio (%)
Fixed assets to net worth ratio (%)
Ratio of fixed assets to long-term capital (%)
Cash Flows:
Cash flows (used in) provided by operating activities
Cash flows provided by (used in) investing activities
Cash flows provided by (used in) financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at end of the period
Others:
Return on equity (%)
Price earnings ratio (times)
575,540
134,857
238,080
1,421,206
16.8
159.8
241.7
56.6
223.1
68.7
Notes: 1. Revenues represent sales from non-financial business and revenue from financial business.
2. EBITDA = Business income (operating income + interest income and dividends) + depreciation + amortization
3. For the fiscal years 1996-98, total interest-bearing debts, net interest-bearing debts, total assets, the equity ratio, the debt/equity ratio and the net debt/equity ratio have been adjusted to exclude loans from SOFTBANK to MAC Inc.
and borrowings of SOFTBANK Holdings Inc. from MAC Inc.
4. Net interest-bearing debts and the net debt/equity ratio are calculated by deducting cash and deposits and marketable securities (current assets) and others from interest-bearing debts.
5. The price earnings ratio uses the share price at each fiscal year-end.
6. Net income per share is calculated based on the weighted-average number of shares outstanding during each fiscal year, and net assets per share is calculated based on the number of shares outstanding as of each fiscal year-end.
The adjusted figures reflect the following stock splits.
May 19, 1995 1.4:1 / Nov. 20, 1995 1.4:1 / May 20, 1996 1.4:1 / Nov. 20, 1996 1.4:1 / May 20, 1997 1.3:1 / June 23, 2000 3.0:1
7. Cash dividends per share paid in fiscal 1998 include an additional ¥20 per share to commemorate the listing of SOFTBANK’s shares.
8. The number of public companies refers to subsidiaries and affiliates.
26
(Millions of yen except for per share and % data)
FY2000
FY1999
FY1998
FY1997
FY1996
FY1995
423,220
8,377
2.0
43,816
32,168
8,446
2.0
528,159
12,130
2.3
54,650
36,640
37,538
7.1
513,364
31,938
6.2
88,083
33,824
10,303
2.0
359,742
33,670
9.4
71,921
29,567
9,092
2.5
171,101
15,822
9.2
21,535
15,982
5,794
3.4
96,808
5,692
5.9
6,307
5,379
2,052
2.1
418,706
163,997
380,740
1,168,308
32.6
149.8
110.0
43.1
171.1
90.8
444,392
351,790
284,976
952,578
29.9
162.2
155.9
123.4
227.6
91.9
396,143
361,602
242,758
854,743
28.4
111.5
163.2
149.0
370.7
102.5
365,578
330,329
234,617
790,889
29.7
110.9
155.8
140.8
368.7
99.8
230,996
212,424
119,679
440,618
27.2
118.1
193.0
177.5
413.7
97.3
21,092
(15,595)
47,709
98,640
48.4
236.0
44.2
(32.7)
45.8
32.5
349
(60,341)
220,914
160,615
268,060
(28,668)
281,005
(205,562)
53,988
105,886
19,248
(33,677)
21,591
9,909
51,898
43,422
(323,817)
343,278
16,676
35,249
5,269
(446,459)
434,605
(18,114)
18,573
(509)
(18,649)
51,759
32,601
36,687
2.5
1,172.3
14.2
36.3
4.3
53.2
5.1
63.2
6.9
123.6
7.6
62.2
78.05
26.02
3,456.55
1,152.18
20.00
6.67
365.38
121.79
2,719.35
906.45
20.00
6.67
100.77
33.59
2,375.24
791.75
40.00
13.33
124.25
31.86
2,980.33
764.19
20.00
5.13
176.33
23.07
3,452.06
451.60
15.00
1.96
149.07
9.95
2,935.92
195.96
15.00
1.00
110,150
143
53
13
104,796
71
20
7
102,204
63
15
2
78,722
32
13
1
34,669
25
9
0
16,250
12
6
0
27
News
Highlights of the Fiscal Year
Topics
2003
Apr. BB Phone subscribers topped the 2 million mark.
Nov. SOFTBANK FRONTIER SECURITIES CO., LTD. (currently WORLD NICHIEI
FRONTIER Securities Co., Ltd.) received a patent concerning a private
equity market.
Jun. SOFTBANK INVESTMENT CORPORATION and E*TRADE Japan K.K.
merged.
The decision was made to offer Yahoo! BB in Hachijojima in Tokyo, as
part of measures to bridge the digital divide, which is caused by geographical constraints.
Yahoo! BB won a SUPER Quest Award in the backbone edge/core category at the SUPERCOMM 2003 communications infrastructure technology exhibition in the U.S.
SOFTBANK BB Corp. announced plans to build a Remote Medical Imaging Diagnosis System jointly with Doctor Net Inc. which will operate this
service, and Oracle Corporation Japan.
Jul. SOFTBANK BB Corp. established the Broadband Association to provide
a forum for interaction among companies in various industries and conduct promotional and educational activities concerning broadband.
Dec. BB Phone started a service using the “050” number.
SOFTBANK Broadmedia Corporation formed an alliance with G-cluster
Ltd. to begin an interactive services business that mainly involves games.
A preliminary license for conducting experiments was obtained for thirdgeneration (3G) mobile phones using the TD-CDMA and CDMA2000
technologies.
Yahoo! BB 26M began commercial operations.
BB Cable Corporation extended the service area for its BB Cable TV service to include Tokyo and three neighboring prefectures (Kanagawa, Chiba
and Saitama).
SOFTBANK BB Corp. and BB Serve Inc. started the BB Games online
game portal site.
SOFTBANK CORP. issued yen-denominated convertible bonds in the
Euromarket and stock, procuring a total of ¥198.7 billion.
2004
Jan. Registered paying users of RAGNAROK ONLINE, an online game operated by GungHo Online Entertainment, Inc., topped the 400,000 mark.
Yahoo! BB 45M began commercial operations.
Aug. Yahoo! BB subscribers topped the 3 million mark.
Sep. All shares of Aozora Bank, Ltd. were sold to Cerberus NCB Acquisition, LP.
Finance All Corporation listed its shares on the Hercules Market of the
Osaka Securities Exchange.
Feb. WORLD NICHIEI FRONTIER Securities Co., Ltd., created through the
merger of SOFTBANK FRONTIER SECURITIES CO., LTD. and WORLD
NICHIEI Securities Co., Ltd., listed its shares on the Hercules Market of
the Osaka Securities Exchange.
SOFTBANK Media & Marketing Corp. established the Ohanashi Ehon
Club, an e-library website that supplies digital picture books using broadband networks.
Oct. BB Phone subscribers topped the 3 million mark.
Carview Corporation was awarded TRUSTe certification for protection
of privacy.
Yahoo Japan Corporation shares were listed on the first section of the
Tokyo Stock Exchange.
Mar. SOFTBANK BB Corp. established the Privacy Management Advisory Board
and the Technical Advisory Board.
SOFTBANK BB Corp. opened Yahoo! BB Broadband Guide, Japan’s
largest website providing information on broadband programs.
SOFTBANK BB Corp. and Oracle Corporation Japan formed an alliance in
the field of utility computing services.
Major Licensing Agreements for Provision of BB Cable TV Video-on-Demand Service
Twentieth Century FOX
Kadokawa Shoten
MGM International Television Distribution
NFL “National Football League”
DreamWorks
GAGA Communications
TOHO TOWA
28
SOFTBANK CORP. issued yen-denominated straight bonds in the
Euromarket, procuring approximately ¥48.0 billion.
Yahoo! BB subscribers topped the 4 million mark.
Corporate Data
Company Outline
Stock Information
Company Name
Stock Information
SOFTBANK CORP.
Shares Authorized
Corporate Headquarters
Shares Issued
24-1, Nihonbashi-Hakozakicho, Chuo-ku,
Number of Shareholders
Tokyo 103-8501, Japan
1,200,000,000 shares
351,436,826 shares
249,064
Principal Shareholders
TEL: +81-3-5642-8000
Founded
Name
Number of
Shares Held
(Thousands)
Percentage of Total
Shares Issued
(%)
September 3, 1981
Masayoshi Son
110,715
31.58
Paid-in Capital
Japan Trustee Services Bank, Ltd.
9,930
2.83
¥162,303,564,101 (As of March 31, 2004)
The Master Trust Bank of Japan, Ltd.
8,743
2.49
Tokyo Stock Exchange, First Section
Clearstream Banking SA
(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited, Tokyo Branch)
7,300
2.08
Annual Meeting
Japan Securities Finance Co., Ltd.
6,702
1.91
June
STATE STREET BANK AND TRUST COMPANY
(Standing proxy: Mizuho Corporate Bank, Ltd.)
3,771
1.07
Trust & Custody Services Bank, Ltd.
3,666
1.04
Son Holdings Inc.
3,580
1.02
Stock Exchange Registration
Directors and Corporate Auditors
(As of June 24, 2004)
President and
Chief Executive Officer
Masayoshi Son
Directors
Yoshitaka Kitao
Daiwa Securities Co. Ltd.
2,207
0.62
Nikko Cordial Securities Inc.
1,842
0.52
Note: The above table includes shares held as part of trust operations as follows:
Japan Trustee Services Bank, Ltd.
The Master Trust Bank of Japan, Ltd.
Trust & Custody Services Bank, Ltd.
Breakdown of Shareholders
(President & CEO, SOFTBANK FINANCE CORPORATION)
Financial Institutions 11.11%
Ken Miyauchi
Securities Companies 5.10%
(Executive Vice President & COO, SOFTBANK BB Corp.)
Other Companies
Kazuhiko Kasai
Foreign Institutions
and Individuals
Masahiro Inoue
2.94%
13.68%
(President & CEO, Yahoo Japan Corporation)
Ronald D. Fisher
(Vice Chairman, SOFTBANK Holdings Inc.)
Jun Murai, Ph.D.
Individuals and Others
67.17%
(Professor, Faculty of Environmental Information, KEIO University)
Tadashi Yanai
(Chairman & CEO, FAST RETAILING CO., LTD.)
Corporate Auditors
Mitsuo Sano
(Full-time Corporate Auditor, SOFTBANK CORP.)
Soichiro Uno
(Attorney)
Kouichi Shibayama
(Zeirishi-Hojin ChuoAoyama (PricewaterhouseCoopers)/Advisor)
Hidekazu Kubokawa
(Certified Public Accountant, Certified Tax Accountant)
Note: Mr. Soichiro Uno, Mr. Kouichi Shibayama, and Mr. Hidekazu Kubokawa, candidates for the reappointment of Corporate Auditors, satisfy the qualifications of outside corporate auditors as provided in
Paragraph 1, Article 18 of “Law for Special Measures to Commercial Code Concerning Audit, etc. of
Kabushiki-kaisya.”
Please use the following URL to register for “SOFTBANK BB mail”:
http://www.softbank.co.jp/BBMail/ (only in Japanese)
29
FACT BOOK
2004
24-1, Nihonbashi-Hakozakicho, Chuo-ku,Tokyo 103-8501, Japan
SOFTBANK CORP.’s Fact Book contains many of the valuable trademarks owned and used by SOFTBANK CORP. and its subsidiaries and affiliates in Japan and internationally to distinguish their properties and services.
Other brands and names are the property of their respective owners.
Printed in Japan
Copyright ©2004, SOFTBANK CORP.
All Rights Reserved

e-Finance Segment

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